Final answer:
U.S. banks do not provide loans to foreign governments but engage in international banking activities to diversify assets and tap into larger spreads in global markets.
Explanation:
False
U.S. banks typically do not provide loans to foreign governments. However, they do engage in international banking activities like holding assets abroad, establishing branches in other countries, and borrowing in dollars to mitigate exchange rate risks.
In contrast to lending to foreign governments, U.S. banks invest in various financial products globally to diversify assets and tap into larger spreads available in international markets.
Learn more about U.S. banks and international banking here:
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